TL;DR
- BlackRock’s iShares Bitcoin Trust (IBIT) has reached $70 billion in assets under management in just 341 trading days, making it the fastest-growing ETF in US history.
- It has now surpassed IVV, BlackRock’s flagship S&P 500 ETF, in fee revenue generation.
- IBIT’s rapid ascent reflects increasing institutional adoption of Bitcoin.
Launched in early 2024, IBIT has quickly become a standout performer among US ETFs. According to data from Bloomberg’s Eric Balchunas, it ranks fourth in year-to-date inflows, overtaking long-standing funds like the SPDR Portfolio S&P 500 ETF (SPLG). It has even edged past BlackRock’s own IVV in annual fee revenue, generating $186 million compared to IVV’s $183 million.
While IVV manages over $600 billion, its ultra-low 0.03% fee is overshadowed by IBIT’s 0.25%, which reflects a stronger monetization model. IBIT’s growth comes despite declining volatility in Bitcoin markets. ETF analyst Eric Balchunas notes that IBIT’s volatility has dropped to near parity with IVV, a major shift from last year when it was nearly six times more volatile.
This sharp fee performance underscores a growing trend: investors are willing to pay more for crypto exposure if it comes in a secure, regulated wrapper like IBIT. The ETF’s success is not only about Bitcoin, it’s about trust in BlackRock’s infrastructure and strategy. IBIT has also benefited from BlackRock’s distribution strength, helping it gain rapid access to institutional portfolios and retirement accounts.
Institutional Bitcoin Exposure Drives Demand Growth
Weekly inflow data confirms a widening gap between IBIT and its rivals. Since launch, IBIT has attracted over $52 billion in net inflows, while the rest of the Bitcoin ETF market has remained flat near $20 billion. This divergence is reinforced by minimal outflows and consistent inflows, indicating investor confidence in BlackRock’s approach.
On June 28, IBIT added $153 million in new funds, second only to Fidelity’s Bitcoin ETF. Altogether, Bitcoin ETFs saw over $500 million in net inflows that day, contributing to a total of $2.2 billion in weekly inflows, the highest in months.
As IBIT climbs, experts believe the market may be entering a “crypto ETF summer,” with high chances of altcoin ETF approvals ahead. Funds for XRP and Solana are now being considered, potentially broadening investor access and accelerating adoption of other digital assets beyond Bitcoin.
If momentum continues, IBIT could soon challenge traditional ETF heavyweights not only in growth but in long-term institutional preference. Its performance may also influence how asset managers structure future crypto-linked products.
